Workouts and Turnarounds II

The most trusted names in workouts and turnarounds share their valuable strategies Compiling insights and methods from industry experts, this authoritative and practical guide cuts through the maze of corporate restructuring jargon to give corporate leaders and professionals the proven techniques and clear advice needed to understand today's corporate turnarounds and workouts. Workouts & Turnarounds II: Global Restructuring Strategies for the Next Century gives detailed coverage of the key issues involved in this process-from both the creditor and company positions. You'll learn how to identify a troubled company and determine the chances of turnaround, and what management should focus on before it's too late. One of the leading authorities in financial and operational restructuring services, Dominic DiNapoli has assembled experts from around the country who have provided their insights and years of experience in the various topics covered in this book. From business regeneration tactics, to managing corporate communications, to the roles of lawyers and lender services, you'll find a wealth of information in this comprehensive reference. In addition, this guide contains case studies of turnarounds in progress, illustrating many of the techniques and strategies currently available. Whether you are a CEO, an attorney, or a lender restructuring or investing in distressed companies, Workouts & Turnarounds II: Global Restructuring Strategies for the Next Century gives you the crucial information you need to make the right decisions today.Aufgrund steigender Investitionen im Bereich Emerging Markets müssen sich Unternehmen weltweit mit den Begriffen außergerichtlicher Vergleich und Umschwung auseinandersetzen. Es erhöht sich der Druck, den Shareholder Value zu maximieren und die Effizienz zu steigern. Das Ergebnis ist ein "prozeßwütiges" Umfeld und Instabilität bei bestimmten Branchen und Märkten. Dieser Band ist ein exzellentes Nachschlagewerk für Profis, die sich einen Einblick in die Kernthemen zu außergerichtlichem Vergleich und Umschwung verschaffen wollen. Hier werden Vorteile, Gefahren und mögliche Fallstricke aktuell verfügbarer Finanzierungsalternativen für Unternehmen in Finanznot erläutert. Ferner werden erprobte Methoden analysiert, mit deren Hilfe man bestimmen kann, ob ein außergerichtlicher Vergleich für das finanzschwache Unternehmen wahrscheinlich ist. Der Autor stellt Techniken vor zur Bewältigung einer Krisensituation, und zwar aus der Sicht von Unternehmer UND Gläubiger. Mit vielen Ratschlägen und Tips von führenden Autoritäten auf den Gebieten außergerichtlicher Vergleich und Umschwung sowie Restrukturierung und Konkursberatung. (10/99)

Preface xxix

1 Trouble Spotting: Assessing the Likelihood of a Turnaround 1
Dominic DiNapoli and Elliot Fuhr
PricewaterhouseCoopers LLP

2 Looming Financial or Business Failure: Fix or File – A Legal Perspective 21
Harvey R. Miller
Weil, Gotshal & Manges LLP

3 Preparing for Bankruptcy: Building the War Chest 45
Joel Nitzberg
PricewaterhouseCoopers LLP

4 Business Regeneration: Early Detection – Early Intervention 54
R. Carter Pate
PricewaterhouseCoppers LLP

5 Spin Control: Managing Internal and External Communications 74
Michael S. Sitrick
Sitrick & Company

6 The Lawyer’s Role in Representing the Distressed Company 85
Lewis Kruger and Robin E. Keller
Stroock & Stroock & Laven LLP

7 At the Front of the Line: The Secured Creditor 108
Chaim J. Fortgang, Seth Gardner, and David R. Caro
Wachtell, Lipton, Rosen, & Katz

8 Representing the Unsecured Creditors’ Committee in Insolvency Restructurings 156
David S. Kurtz, Jeffrey W. Linstrom, and Timothy R. Pohl
Skadden, Arps, Slate, Meagher & Flom LLP

9 Lender Services: Let the Lender Beware! 191
Robert S. Paul and Kris Coghlan
PricewaterhouseCoopers LLP

10 Financing Alternatives for Troubled Companies 215
William C. Repko
The Chase Manhattan Bank, N.A.

11 Valuation of Companies within Workout and Turnaround Situations 225
Thomas J. Milton, Jr. and Shannon P. Pratt
Willamette Management Associates

12 Market Dynamic and Investments Performance of Distressed and Defaulted Debt Securities 238
Edward I. Altman
New York University

13 International Restructuring: Overcoming Cross-Border Hurdles in South America 253
Deborah M. Smith, PricewaterhouseCoopers LLP and Jeffrey A. Sell
The Chase Manhattan Bank, N.A.

14 Asian Markets 279
M. Freddie Reiss
PricewaterhouseCoopers LLP

15 The Accountant’s Role in the Workout Environment Beyond “Bean Counting” 303
DeLain E. Gray
PricewaterhouseCoopers LLP

16 Dealing with Employee Issues in a Bankruptcy Situation 328
Robert J. Rosenberg and David S. Heller
Latham & Watkins

17 Financial Aspects of Bankruptcy Disputes 349
Harvey R. Kelly and Daniel V. Dooley
PricewaterhouseCoopers LLP

18 Tax Planning in Corporate Reorganizations 378
Mitchel R. Aeder
PricewaterhouseCoopers LLP

19 The Retail Industry – Trends in the Next Century 399
Kevin Regan
PricewaterhouseCoopers LLP

20 A New Paradigm Emerges 416
Jack Barthell, Pat Leardo, and Mitch M. Roschelle
PricewaterhouseCoopers LLP

DOMINIC DINAPOLI is the partner-in-charge of PricewaterhouseCoopers LLP's North American Business Recovery Services practice. Although most businesses in the United States have remained relatively stable in the current economic environment, there are always instances when highly leveraged companies experience financial trouble and even bankruptcy. When faced with such situations, Workouts & Turnarounds II provides company managers, workout professionals, and other stakeholders with guidance and insights into all facets of corporate restructuring. Workouts & Turnarounds II gives practical advice and proven methodologies on the key issues involved in workouts and turnarounds from the leading authorities in the field of corporate restructuring and bankruptcy consulting. Providing proven methods for deciding the likelihood of a turnaround in a distressed company, this comprehensive reference identifies key factors your company needs to consider in order to make the decision to restructure, divest, or liquidate. In addition, you'll find valuable insights on:

* Legal and practical considerations of international restructuring

* Methods for analyzing company trends to determine the likelihood of a pending bankruptcy

* Industry perspectives and issues related to both in-court and out-of-court restructuring

* Helpful techniques for managing distressed situations from the perspective of the company and its creditor constituencies

* Evaluating underlying trends in the high-yield and equity markets

By analyzing case studies of turnarounds and bankruptcies, Workouts & Turnarounds II arms you with an overview of corporate restructuring from the strategic perspective of the debtor and secured or unsecured creditors. It provides insights as to how to prepare for bankruptcy, ways to manage your professionals, and what to expect from them throughout the restructuring process. Corporate leaders and middle-level managers need to understand the potential implications of having an underperforming division or a few downtrending quarters. Workouts & Turnarounds II provides corporate leaders with effective techniques and troubleshooting strategies to maximize shareholder value. This book is a must-have guide for companies considering a debt restructuring or seeking to perform a self-diagnosis to address the early warnings of underperformance which could lead to a potential failure. The most trusted names in workouts and turnarounds share their valuable strategies Compiling insights and methods from industry experts, this authoritative and practical guide cuts through the maze of corporate restructuring jargon to give corporate leaders and professionals the proven techniques and clear advice needed to understand today's corporate turnarounds and workouts. Workouts & Turnarounds II: Global Restructuring Strategies for the Next Century gives detailed coverage of the key issues involved in this process-from both the creditor and company positions. You'll learn how to identify a troubled company and determine the chances of turnaround, and what management should focus on before it's too late. One of the leading authorities in financial and operational restructuring services, Dominic DiNapoli has assembled experts from around the country who have provided their insights and years of experience in the various topics covered in this book. From business regeneration tactics, to managing corporate communications, to the roles of lawyers and lender services, you'll find a wealth of information in this comprehensive reference. In addition, this guide contains case studies of turnarounds in progress, illustrating many of the techniques and strategies currently available. Whether you are a CEO, an attorney, or a lender restructuring or investing in distressed companies, Workouts & Turnarounds II: Global Restructuring Strategies for the Next Century gives you the crucial information you need to make the right decisions today.